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Explain the following term/concept. Dematerialisation

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Question

Explain the following term/concept.

Dematerialisation

Explain
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Solution

The process of conversion of physical certificates into electronic mode is called dematerialisation. The client has to surrender the physical shares certificates along with the Demat Request Form (DRF) to the DP. The DP forwards these to the depository who in turn forwards it to the issuer. After confirmation from issuer, the depository will credit the securities in the Demat A/c with DP.

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Chapter 9: Depository System - Explain the following terms/concepts

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